Industry News

President Trump Tweets Section 301 Duties to Go Up to 25% and Expand

May 5, 2019

On Sunday, President Trump sent a tweet thread indicating his intention to increase and broaden the scope of duties paid under the section 301 duty program. The tweets were sent Sunday morning and appear to have been in response to a perceived lack of progress in talks with China.

The tweets indicated that goods subject to the third tranche would go from 10% additional duties to 25% on Friday. The tweets also indicated that a fourth tranche encompassing the remaining $325 billion in imported Chinese goods not already subject to additional duties would be subject to 25% “shortly.” The tweets did not indicate whether a Federal Register notice would be forthcoming.

For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars....

...of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!

We will continue to monitor this developing situation. Do not hesitate to reach out to any of our attorneys if you have any questions.